All Forum Posts by: Abraham Anderson

I'm in talks to purchase a 60 unit property composed of fifty 2 bedroom 1 baths, six 3 beds 2 baths, and 4 single bed/bath. I've called several companies for quotes, so far the only one I've gotten back was $9,500. The property is around the Knoxville TN market.

Are there any desktop/standalone rental software you can recommend? Something that you pay a 1 time fee for a license (not a subscription service).

I'm looking at a 60 unit property; between the pro-forma and the tax return I received for 2016, there's a 52K discrepancy. I contacted the listing agent who informed me that, on the pro-forma, they removed the 2016 CapEx costs (roof & HVAC replacements) from their list of expenses.

The NOI is already much lower than this property should be at, mainly due to a large number of vacant units (A husband/wife built and managed them, the husband has been sick and recently died, so the property has been mis-managed, the elderly wife wants to get out of them and move to Florida), should I base my offer off the "actual" NOI including CapEx costs, off of theirs, or somewhere in the middle?

One last note, the vacant units are rent ready, so if I acquire this property, task #1 is filling the vacant units.

Thank you.

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Does anyone here calculate/charge RUBS themselves, or do you recommend using a 3rd party company for this?

Michael, I appreciate the input. That's why I am on BP, to educate myself ;). I wasn't offering based on the tax appraisal. I mainly wanted to show that I am interested in buying the property & get discussions started.

Carson, this may be the case. I will keep you guys updated when I hear back from them. To my understanding, #1 the owners are older and retiring, #2 they have already moved several hours away, but apparently are still managing the property themselves, which (if accurate) must be annoying/tiring. So I am still hoping I can make a deal at a decent price. We will see!

Thanks everyone for the replies.

I did the numbers. Even at the asking price, it's a good investment. I came up 50 grand (to 600K). I am not trying to be the lowballer, but the property has been listed for 2 years and I need to get a good deal. Every penny I save will be invested back into the property in the form of improvements & repairs. I'll keep you guys updated!

I made an offer on a multi family property; the asking price was $795K, however the tax appraisal is only about $480K. so I put in a offer at $550K. The property has been listed for almost 2 years

I don't have a RE agent, I went directly to the selling agent and made the offer. She came back today saying "the purchase price needs to be much closer to the asking price". No counter-offer was submitted.

I thought about waiting a couple days to reply (so as not to seem eager), I'm a little annoyed they didn't even counter. Now what?

I'm looking at buying a 30 unit complex. 100% occupied, the current owner has them all month. The rent is anywhere from $50-200 too low when compared to similar apartments nearby.

What's the best approach at raising rents in this situation, while avoiding a mass exodus? Making them sign a lease? Only raising 2-3 tenants rent per month?

A little more background, they are mostly older tenants, & many have been there for 5 to 10 years. 

Between now and when the 7 year balloon is due, is there a way to refinance so I don't have to come up with ~1M? I've heard of people refinancing through Fannie Mae, is that common?